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Thursday, May 29, 2008

Futures Series - Zero Sum

Challenge Accounts:

Investing Account Balance:
$247.27
Stock / Futures Trading Balance: $735.61
Online Savings Balance: $27.15

Personal Trading Thoughts: I have a ton of personal errands I have to run today, so not much in the way of trading. I'm going to see if I can get back by 12:30 pm, and who knows, may pull out a day trade or two.

Personal Investing Thoughts: Yesterday was sideways. My own personal portfolio is taking a bit of a breather. But since I'm a DRIP / Dividend investor, this is actually great news. This means I'll DRIP / DCA my positions at better prices with dividend season approaching.


Yesterday we discussed the very nature of commodity future markets, and how they differ from other markets. Let's continue that discussion today, with the mechanics of the futures markets. Let's talk about zero zum.



Next, I'll begin on the "Players" in the Futures markets.

* * *

Investing Account Balance: $247.27
Stock / Futures Trading Balance: $735.61
Online Savings Balance: $27.15


Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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